30 June 2026

Unhappy Voters in the UK and US

Keir Starmer served 23 months as the UK's Prime Minister and next month it seems almost certain that former Greater Manchester Mayor Andy Burnham will become the UK's new PM.

In the last 20 years, the UK has had 7 Prime Ministers (Brown, Cameron, May, Johnson, Truss, Sunak, and Starmer) who have served 2.7 years on average. (One is tempted to predict that in the future, every Brit will be PM for a day.) By contrast, the US has had 3 presidents (Obama, Trump, and Biden) who have served 5.7 years on average. 

Recent US presidents saw their approval ratings plummet well below 40% midway through their terms. In a parliamentary system, ratings that low almost always trigger an internal party coup or a formal vote of no confidence. That is to say, if we had a similar electoral system, we in the US would likely have a similar rate of turnover.

At least since the time of Thatcher and Reagan, and then Blair and Clinton, and then the UK's vote for BREXIT at the same time that the US elected Trump, the UK and the US have had similar politics. What that means in this 21st century is that voters are unhappy and unafraid to quickly withdraw their approval. In the UK, that also means sending their PM off to the next chapter of their lives. Here in the US we have to simply endure as the calendar runs out. 


My Schadenfreuden Therapist

"You dropped your therapist because he was Freudian?"
"No. More like schadenfreuden. He seemed too happy to hear about my unhappiness."

Supreme Court Upholds Fourteenth Amendment


The thirteenth amendment ended slavery. The fourteenth amendment gave the children of slaves citizenship. Today the Supreme Court ruled - 6 to 3 - that children born in these United States are American citizens regardless of whether their parents were slaves or millionaires, Finnish tourists or 9th generation Americans. That is, most of the Supreme Court ruled that the constitution is still more important than the opinion of a former Reality TV star.

Trump was transformed from a Reality TV star into a presidential candidate by claiming that President Barack Obama - whose father was African - was not born in these United States. Or at the very least did not qualify as a citizen given who his father was. It is absurd that his attack on the fourteenth amendment - his claim that only certain people born here qualified as citizens - was taken this seriously.

Trump's Republican Party has very little in common with Lincoln's Republican Party.

28 June 2026

It's All Made Up - Inventing Modern Products and Institutions

There seems to be a dawning realization that our social inventions - institutions, norms, culture, processes - are invented just as our products are. At that point of realization, some people become a nihilist, believing that because it is all made up, none of it matters. I feel very differently.
777s are just made up. I was at Boeing in one of the rooms that had file cabinets with various designs for this jet that could carry 400 people 7,000 miles. The complexity is mind boggling. And they have to get it all right to make it successful. A jet is just made up, just invented, but it matters a great deal that designers, builders and operators get it right.

Churches, states, banks, schools, and corporations, even marriage is just made up. But it takes a lot to get them right. And they really do make us different people.

Polygamy and monogamy are completely made up. At different times and in different places, communities embrace one or the other. But the consequences are very real. The 10 most violent nations in the world practice polygamy. When swaths of young men can't get a partner, the community is more violent.

Theocracy and democracy are completely made up. Voice of God or voice of the people? It's all social invention. But the consequences are very real. The 10 most prosperous countries in the world are democracies. Better truths come out of debate and multiple perspectives than from dictates from a religious elite.

About 100, 150 years ago we got much better at product invention. (Edison may have "invented" the first R&D lab. He died with over 1,000 patents in his name partly because he was an inventive genius but more so because he was one of the first to hire people to turn out inventions the way that others hired people to turn out products.)

We are learning more about social invention. One of the things we are learning is that most progress is incremental. A gain of 2% a year in income will double incomes every 35 years. The American revolution that gave religious freedom went much better than the French revolution that outlawed religion. We experiment our way into the future and while we challenge everything we pause before we blow up institutions. (We blew up the monarchy. We did not blow up the nation-state.)

The most important thing we are learning about social invention is that social constructs are like products, like other tools. They make our lives better but they are our tools, we are not theirs. You can love the creative genius of Karl Benz and Henry Ford without wondering whether they would approve of cup holders in a car or marvel at the genius of Jefferson and Hamilton without wondering whether they'd approve of a law banning child labor.

Social invention is at least as hard as designing, building and operating a 777 and it is even more important. If you mess up on a 777, only 400 people die. Errors in social invention kill millions.

So yes, it's all made up. And that should make you take it all more seriously rather than be more flippant, more nihilistic about it.

26 June 2026

My new book, New Politics for the Next Economy, is now available at Amazon

New Politics for the Next Economy available here:

https://www.amazon.com/dp/B0H6P5MZ6Z/

At our country's 250th anniversary, I've described four past Americas and a fifth, new America that is ours to make. The good news is that this suggests so much promise. The bad news is that transitions into a new America have always been a mess. It seems as though Americans have to make things so much worse before they act to make things so much better.
The first America - most clearly defined by Jefferson - focused on land, on creating a nation of farmers. From the Louisiana Purchase to the war with Mexico that resulted in the top half of Mexico becoming the bottom third of America, the US grew by nearly two Indias.

Lincoln and the New Republicans transformed America into an industrial power that focused on creating new capital rather than acquiring more land. Between 1861 and 1933, we ended slavery, gave women the right to vote, and began to transform reality through the spread of inventions like trains, telegraph, electricity, cars and planes and the creation of unprecedented levels of wealth and products.

FDR then added a focus on full employment, the creation of labor as a factor of production that was not incidental, but central to progress, to realizing the potential of this great country. Between 1900 and 2000 we went from a world in which roughly 10 percent of teenagers were in high school or university to a world in which less than 10 percent were not. The creation of a world in which the Bureau of Labor Statistics defines about 800 distinct careers and in which the returns to meritocracy have created a new kind of intellectual capitalist.

Reagan was asked if he thought he could be president after a career as an actor and quipped that he didn't know how one could do the job without having been an actor. Once we'd accomplished incredible feats like landing on the moon, splitting the atom, and editing the human genome two things became apparent: creating new knowledge of HOW to do things and then deciding WHAT we should allow or prohibit, fund or discourage would define politics and the economy in this information age. That is, culture - questions of HOW and WHAT - became central to this new information economy.

You - lucky reader - are now living through another one of the historic moments in which we're reaching the limits of one America and a new America is struggling to be born. These transitions are messy, dramatic, and can give birth to a new America that is so much better than the last.

The next America will focus on the institutions that define us and our potential, taking us beyond our current institutional recession into a entrepreneurial economy in which we get more adept at creating the institutions that do so much to define us and our potential.

New Politics for the Next Economy narrates past history and future history that is yours to make. Get yourself a copy. And perhaps buy one for that politician you think has so much potential. We've got a new America to make and it might just wow your kids and grandkids. Let me know how it changes your mind. And then let's see how we can change our country.


25 June 2026

New Politics for the Next Economy Published Week Before Country's 250th Anniversary!

New Politics for the Next Economy now available, published 25 June 2026 ....

https://www.amazon.com/dp/B0H6P5MZ6Z/


New Politics for the Next Economy: 

The Critical Chain of Progress

by
Ron Davison

My new book that gives pattern to - and hope for - the political turmoil of America. 

Buy two copies: one for you and one for the politician you have the most hope for.




From Google to Gargle - Cleanse Your Mind Rather than Fill It

Introducing Gargle, not Google. Every other app fills your head. This one empties it. Swish, spit, repeat.

Gargle: the anti-search engine. Zero results - that's the feature. Empty your mind rather than fill it with clutter.


24 June 2026

A Level Beyond Conventional Bobbleheads

 His collection began conventionally enough: baseball bobbleheads. Years later, however, it had evolved into the far more obscure field of bobble-bellied sumo wrestlers.

$10 Trillion Market Cap

Bold prediction: it will be the first company to reach $10 trillion in market cap.
In June 2023 it reached $1 trillion. Recently, it reached $5.5 trillion.
It'll reach $10 trillion is less than 3 years - probably a couple.




22 June 2026

The American Dr. Who

Doctor Who is delightfully inventive and madcap. The American remake, by contrast, just feels off. Even the title seems pretentious: Doctor Whom.

19 June 2026

The Emergence of American Values After 1980

Wonk that I am, I find this fascinating. Jefferson spoke of liberty. Lincoln spoke of union. FDR spoke of jobs and security. Yet presidents rarely spoke of "American values" as an explicit concept until the 1980s. Since then, references have exploded. One possible explanation is that as politics moved from farms and factories to television and media, debates over culture and identity became increasingly central. And maybe, just maybe, you can get more agreement about the importance of American values if you don't specify which values.




Data from the University of California, Santa Barbara's presidential communications database.

18 June 2026

Culture Wars - Performers for Obama and Trump This Week

The grand opening of the Obama Presidential Center on Chicago's South Side featured Stevie Wonder, Bruce Springsteen, Jennifer Hudson, John Legend, Christina Aguilera, Common, U2’s Bono and The Edge, Marc Anthony, Eddie Vedder, Tems, and The Roots.

Trump's birthday party included performances by Zac Brown Band, Luke Bryan, Kid Rock, and Cage Fighters.

17 June 2026

Which "Pay Iran for Trump's War" Payment Plan Have You Signed Up For?

Apparently Trump is giving Iran $300 billion to settle the war he started. That works out to $1,000 per American. Have you signed up for the one-time payment or are you going for the $100 a month plan for the next year? And are you covering your kids' share or are you just going to pass that along to them as something to roll into their college debt?

16 June 2026

Will Car Sales Stall For the Next Couple of Years as Car Capability Hits an Inflection Point?

I'm an old man. I feel convinced that we're in the middle of about a five year period of transition in which cars will change more than they have at any time in my life.

I wonder if this will translate into a period in which new car sales drop off for the next year or two as people wait for self-driving, efficiency, in car entertainment centers, etc. to hit an inflection point.

14 June 2026

Trump's Narcoleptocracy

Trump's governance? A narcoleptocracy. He gets to sleep through it but its a waking nightmare for the rest of us.

Pope Leo XIII and Pope Leo XIV - Writing About Industrial and AI Revolutions 135 Years Apart

Pope Leo XIV has done something fascinating. 135 years ago, Pope Leo XIII - the last Pope Leo - wrote a piece about industrial capitalism and the importance of protecting industrial workers. Titled Rerum Novarum ("Of New Things"), it saw the mechanization of labor as the core threat - physical machines replacing human muscle power, reducing workers to mere cogs.

On the anniversary of that piece, Pope Leo XIV wrote a very similar piece about workers and AI.
Leo the XIV's document is Magnifica humanitas ("Magnificent Humanity"), subtitled "On Safeguarding the Human Person in the Time of Artificial Intelligence." It sees the core threat as the automation of cognition - algorithmic systems replacing human judgment, relationships, and intellect. Leo XIV's first encyclical, was signed on 15 May 2026 — the 135th anniversary of Rerum Novarum — and published on 25 May. The link reaches back to the first act of his papacy: he chose the name Leo in reference to Leo XIII, and has described AI as ushering in a "new industrial revolution."

Both Pope Leos diagnose the signature danger of their era as the same inversion — the human person slipping from end to instrument while the system or the machine becomes the thing served. The question is which is the tool: the new industrial technology 135 years ago or the new AI technology now vs. the humans interacting with these and at turns using and being used by them.

The first American pope. He's an interesting guy.

Baby Boomer Demand for Sources of Retirement Financing

America is experiencing the largest wave of retirements in history. Roughly 4.1 million Americans per year are reaching retirement age. That's about:

11,300 per day
470 per hour
8 per minute

What is one reason stock prices going up? People are buying equity to finance their retirement.

It is easy to say that this surely would have shown up in purchases BEFORE Americans hit this point of 65 but it is worth remembering that, on average, a 65-year-old American has roughly 20 more years to live, 20 more years to finance; they are not done buying equities once they hit 65.
 

Trump Apparently Wants a Parade After The Cage Match

 Trump started a war and then he ended the war?  Huh.



Converging P/E Ratios for Tesla and Nvidia

Bold Prediction: 
The P/E for Tesla and Nvidia will converge within 3 years. 

Currently P/E for, 

Tesla is 371

Nvidia is 31


First Trillionaire Got There With N/A P/E

Tesla's P/E is 371, more than 10X normal P/E, on profits of $477 million. (For instance, Nvidia's price to earnings ratio is 31.) SpaceX? It doesn't have earnings, posting a massive quarterly net loss of $4.3 billion for Q1 2026.

Combined, the most recent profits of Tesla and SpaceX are negative. Meaning, our world's first trillionaire's two most valuable companies combined have a P/E ratio of ... N/A.

Musk a trillionaire makes as much sense as Trump a president. Maybe that is inevitable in a world in which people get more exposure to memes than reality.

13 June 2026

Hugh Laurie's Protest Song

"For evil to flourish, all that is required is for good men to spout cliches."
- Hugh Laurie
https://www.youtube.com/watch?v=Q8chs2ncYIw

Donald Trump's Birthday Party Cage Match

So many people complaining that Trump is spending hundreds of millions of taxpayer dollars for his birthday party tomorrow at the White House, at a time when the country is literally borrowing money just to make interest payments on the debt. I don't know, though. If Donald ends up in a cage match with the right guy, all the money spent could be worth it.


Masculine Themes at Trump's $60 Million Birthday Party

Don John Trump's birthday party this weekend will cost you $60 million. I hope you like cage fighting because that's what he got you. (And if you want to pay more to view it, you can!)

And Sunday we get our second 80 year old president in a row. Add up the ages of our last two presidents, subtract it from 2026 and we get back to 1864, the year Abraham Lincoln was re-elected.

And of course the reason we have such old men in power is because American men aren't secure enough in their own masculinity to vote for women. But they can, of course, pretend that they are so manly as they cheer for the cage fighters.

The Fifth America and Fifth Transitional President .... Coming Soon to a White House Near You

This summer I'll be releasing the book New Politics for the Next Economy. I argue that we've had four Americas with four distinctly different economies and sets of policies. And then prescribe / predict a fifth America. Here is an image of the four past transitional presidents welcoming the fifth and future transitional president.




12 June 2026

Apparent Confusion Around Elon Musk's Plans

Global investors have colluded to make Elon Musk the world's first trillionaire, today buying shares of his Space-X company.

It is unclear how much of that came from people under the impression that they were donating to a collection someone was taking up to send Elon to Mars.


Three Facts About the US National Debt

Three facts:
The US now borrows money to pay the INTEREST on the national debt.
The US National debt is now greater than current year GDP.
Republicans who contribute the most to the debt regularly get elected by promising to go after the debt.

More on the size, cost and unsustainability of the federal government debt here:
https://www.gao.gov/blog/federal-governments-debt-growing-faster-than-economy-what-means-for-you

Why AI Is Likely to Surpass Us

AI pioneer, Nobel Prize and Turing Award winner, Geoffrey Hinton makes the point that AI is billions of times better than us humans at sharing information.

My own take of history is that the more people you can share with - goods, markets, ideas, services, information - the more affluent you will be, the more agency you'll have. This simple fact of their superiority in sharing may become the simplest explanation for why they surpass us.

In a decade or two when people ask about why they surpassed us, we will say "They share billions of times better than us."

We will be the first species to be surpassed by another who is able to discuss the fact of our inferiority and possible obsolescence.

[Hinton asks the question, Do you know of any example of a more intelligent being controlled by a less intelligent being (suggesting that as it gains intelligence, AI may not submit to us). And he offers only one example: a mother controlled by a baby.]

Full conversation here:
https://www.youtube.com/watch?v=p7t1Q_p2gZs

The World's First Trillionaire

And we now have the world's first trillionaire. On the day SpaceX went public, Elon Musk passed the trillion dollar mark 12 June 2026.




Possibly related? On 12 June 1987 - 39 years ago - U.S. President Ronald Reagan publicly challenged Soviet leader Mikhail Gorbachev to "tear down this wall!"


11 June 2026

The Illusion of Stability and the Reality That Organisms and Organizations Continually Move Toward Extinction or Evolution

Organisms and organizations are being continuously nudged toward either extinction or evolution. Stasis is unstable as a long-term condition. The appearance of stability is usually the surface signature of dynamic processes that happen to be in temporary balance. And the practical implication is that the right response to this condition is not to try to preserve current arrangements unchanged but to engage actively in the adaptation that current conditions require. The choice is not between change and stasis. The choice is between deliberate adaptation and unintended decay, and the second is what happens when the first does not.

It is a fantasy to think that our founding fathers - or even Lincoln's new Republicans or FDR's active reformers or - most shocking of all - Reagan's advisors from just the 1980s - would step into our current world and recognize it as their own. We do not have the alternative to preserve our union as it was or is. We have only the alternative to intentionally adapt to changing conditions, people and imaginations or to watch it decay.

The choice between stagnation and change is mostly illusory. There is no genuine option to keep things as they are. The option to keep things as they are is actually the option to let them decay, because everything around them is changing and a system that does not adapt to a changing context is being increasingly mismatched with its conditions. The visible alternatives are usually adaptation toward continued function or accumulation of mismatch toward eventual failure. The third option, true stability, exists only as an artifact of short time horizons or selective attention.

This is uncomfortable to sit with because human psychology is heavily biased toward preferring the appearance of stability. We like the idea that things can stay as they are. We organize our lives around the assumption that what is reliable today will remain reliable. We resist changes to institutions, customs, and arrangements that have been working, on the grounds that they are working and should not be disturbed. The instinct is reasonable as far as it goes, because changes have costs and unintended consequences, and not every proposed change is an improvement. But the instinct can become pathological when it leads to the assumption that the current arrangement will persist without the ongoing work that has been keeping it in place. The institutions that look most permanent are usually the ones that have been most actively maintained, and when the maintenance stops, the apparent permanence begins to dissolve.

The deepest version of this comes from thermodynamics. The second law of thermodynamics says that closed systems tend toward maximum entropy, which is to say they tend toward disorder, equilibrium, the dissolution of structure. Any ordered system that persists is doing so by importing energy from outside its boundaries and using that energy to maintain its order against the entropic gradient. This is true of stars, of cells, of organisms, of ecosystems, of organizations, of civilizations. None of them are stable in the sense of self-sustaining without input. All of them are, in physical terms, nonequilibrium structures that persist only as long as they can keep importing energy and exporting waste fast enough to maintain themselves against the universe's general tendency toward dissolution.

Organizations are nonequilibrium structures sustained by ongoing inputs of resources, attention, talent, legitimacy, and institutional energy. When these inputs decline, the organization decays. When they grow, the organization can either expand or stagnate, depending on what it does with them. There is no neutral state in which an organization simply persists without development. Every organization is either developing in some direction or decaying, and the appearance of stability is usually the signature of dynamic processes that happen to be roughly balanced for a period.

There are a variety of theories that offer explanations of the balance between stasis and change.

Evolutionary biology gives us the version most people are familiar with. Species that fail to adapt to changing conditions go extinct. Species that do adapt continue, but as something different from what they were. The rates of evolutionary change vary enormously across species and conditions, but the underlying principle is that genetic stability without occasional revision is incompatible with long-term survival.

Systems theory and complexity science give us the version that applies most directly to organizations. Stuart Kauffman, Per Bak, Ilya Prigogine, and others have argued that complex adaptive systems exist on what is sometimes called the edge of chaos, a regime in which the system is dynamic enough to respond to its environment but stable enough to maintain coherent identity. Systems that drift too far toward order become rigid and brittle. Systems that drift too far toward chaos disintegrate. The sustainable position is somewhere in between, and maintaining that position requires continuous adjustment as conditions change. This is sometimes called dynamic equilibrium, but the word equilibrium is misleading because the position is not static. It is a moving balance maintained through continuous effort.

Schumpeter gave us the version that applies to economic and institutional life. Creative destruction is not a periodic event but a continuous condition. Industries, firms, and economic arrangements that fail to adapt are continuously being replaced by ones that do. The appearance of economic stability is the surface signature of constant turnover at deeper levels. The companies in the Dow Jones in 1900 are mostly not the companies in the Dow Jones today. The industries that dominated employment in 1950 are not the industries that dominate employment in 2026. The continuous renewal is what allows the larger economy to persist.

Buddhist philosophy, in a different idiom, has been making essentially the same point for 2,500 years. The doctrine of impermanence, anicca, holds that all conditioned phenomena are in continuous flux, that nothing remains the same from one moment to the next, and that the appearance of stable selves and stable objects is a cognitive overlay we project onto a reality that is fundamentally a process rather than a collection of things. This framing is not identical to the thermodynamic or evolutionary versions, but it points at the same underlying observation: stasis is not a feature of the world we actually live in. The world is constant change, and what we call stable things are local patterns of change that happen to maintain coherence for a while.

Institutional recession is exactly what an institution looks like when its capacity for genuine adaptation has weakened but it has not yet collapsed. The institutions are not extinct. They are also not evolving in directions that match the conditions they are operating in. They are persisting in a state of partial function, doing some of what they used to do, failing at increasing portions of their original purpose, and gradually losing legitimacy as the gap between their performance and the changing demands of their environment widens. This is the phase before either renewal or extinction, and it can last for a long time before resolving in either direction.

The prescription of public sector entrepreneurship as the practice of citizens working to renew their institutions is essentially an argument for active engagement with the adaptation process rather than passive observation of its failure. Institutions cannot adapt by themselves, they require deliberate human effort to undertake the changes that will let them continue to function, and without that effort the trajectory bends toward extinction rather than toward evolution. Complex systems do not maintain themselves automatically. They require continuous infusion of attention, energy, and adjustment, and when that infusion declines, the system declines.

The choice between stagnation and change is mostly illusory. There is no genuine option to keep things as they are. The option to keep things as they are is actually the option to let them decay, because everything around them is changing and a system that does not adapt to a changing context is being increasingly mismatched with its conditions. The visible alternatives are usually adaptation toward continued function or accumulation of mismatch toward eventual failure. The third option, true stability, exists only as an artifact of short time horizons or selective attention.

This is uncomfortable to sit with because human psychology is heavily biased toward preferring the appearance of stability. We like the idea that things can stay as they are. We organize our lives around the assumption that what is reliable today will remain reliable. We resist changes to institutions, customs, and arrangements that have been working, on the grounds that they are working and should not be disturbed. The instinct is reasonable as far as it goes, because changes have costs and unintended consequences, and not every proposed change is an improvement. But the instinct can become pathological when it leads to the assumption that the current arrangement will persist without the ongoing work that has been keeping it in place. The institutions that look most permanent are usually the ones that have been most actively maintained, and when the maintenance stops, the apparent permanence begins to dissolve.

Organisms and organizations really are being continuously nudged toward either extinction or evolution. Stasis really is unstable as a long-term condition. The appearance of stability really is usually the surface signature of dynamic processes that happen to be in temporary balance. And the practical implication is that the right response to this condition is not to try to preserve current arrangements unchanged but to engage actively in the adaptation that current conditions require. The choice is not between change and stasis. The choice is between deliberate adaptation and unintended decay, and the second is what happens when the first does not.

10 June 2026

The Smaller You Make Your Circle of Trading and Investment Partners, The Smaller You Make Your Economy - the Impact of Brexit

David Frum shares data from an economic study of the effect of Brexit on the UK economy.

"... estimates suggest that by 2025, Brexit had reduced UK GDP by 6% to 8%, with the impact accumulating gradually over time. We estimate that investment was reduced by between 12% and 18%, employment by 3% to 4% and productivity by 3% to 4%. .... these forecasts were accurate over a 5-year horizon, but they underestimated the impact over a decade."

My take? The smaller you make your economy in terms of the scope of your trading partners, the smaller you make your economy in terms of investments, employment, incomes and growth in jobs and GDP.



AI Predictions

 AI is going to be bigger than ....

A) Microwave ovens 

B) Radio

C) Cell phones

D) the Railroad

E) Penicillin 


The Next Rocky Movie

It has been 20 years since a new Rocky movie has come out. I don't know what Stallone is waiting for. Maybe the surprise endings are getting harder to dream up.

Stallone: "And then, I'm like on the ropes. I mean, literally on the ropes. It looks like I'm not going to make it and then ..."
Producer: "Let me guess."
"What?"
"You manage an heroic comeback."
"Hey. Why you got to be like that?"
"Sorry."
"You didn't know what I was gonna say."
"I did not. You're right. Very rude of me to interrupt."
"I don't even want to tell you now."
"Please. Tell us. I do want to hear."
"You're sure?"
"Positive. Please. Do go on. I don't know what got into me."
"Okay." Pauses. Shuffles his feet, punches the air a couple of times. "Then, like just when everyone thinks I'm done for, I get this look in my eye. And I start punching. I mean, really punchin'."
"That's it?"
"No! I mean, I come back. I punch him a lot. I punch him hard. I knock him out. Everybody goes crazy."
"And then?"
"And then nothin' We run the credits. That's it."
"So how does it start?"
"Not so good. Things don't look so good for Rocky."
"But then you come back?"
"That's right. That's it."
"So who are you fighting in this one?"
"Chat GPT. He's a real know it all. I don't like him. Nobody likes him. I don't say nothin' I just throw punches."
"Sounds like a hit. That's great. Really."
"Yeah?"
"Yeah."

Fascism Is Always Home-Grown

"Fascism is ultra-nationalist. In other words, there is no such thing as foreign fascism. Fascism is always home-grown."

- Sarah Churchwell, cultural historian

Culture - From Taming the Wilderness to Taming People

Culture began as agriculture, the art of taming wilderness into productive soil. Later, it became the art of taming people, making them productive. A tidy arc from soil to soul. From productivity of land to productivity of the human animal, a more cultured existence.

The Story of Inflation and Unemployment from 2019 Through May of 2026

Inflation was 4.2% in May, up from 2.4% a year ago.

During his debate with Vice President Kamala Harris, Donald Trump frequently blamed the Biden-Harris administration for record inflation, calling it "probably the worst in our nation's history". He claimed the cost of basic groceries and energy had skyrocketed, causing a "disaster for people", and pointed to the Inflation Reduction Act as a cause of economic catastrophe.

Here are year end numbers for inflation and unemployment through COVID in 2020, the stimulus program and supply chain issues that dramatically reduced unemployment and raised inflation in 2021 and 2022, and then the slow return to normal interrupted this year by Trump's war with Iran and the resultant oil price shocks that have again raised inflation (the blue portion of the bar below).



Related, real income has dropped in the last year. This from BLS,
"From May 2025 to May 2026, real average hourly earnings decreased 0.7 percent, seasonally adjusted. 
The change in real average hourly earnings combined with a 0.3-percent increase in the average 
workweek resulted in a 0.4-percent decrease in real average weekly earnings over this period."

09 June 2026

The Preposterous Age Difference Between Trump and Obama

The Obama Library opens in Chicago this summer.

Here is a curious fact: starting right now, Barack Obama could serve four more terms as president and still be younger than Trump is right now.

Trump is not 4 years older than Barack Obama. He's 4 terms older.

Trump's Preposterous Claim that a Republican Won California's Recent Election for Governor

The last time Californians cast a majority vote for either a senate or presidential candidate from the Republican Party was in 1988. That was a long time ago: a child born that year is now old enough to run for president.

Trump thinks you're stupid enough to believe him when he says that there is no way a Republican candidate for governor came in second place in a state-wide election last week, even though that is all they have done for 38 years.

08 June 2026

Explaining the Sell-Off of Stocks in the First Week of June

The New York Knicks made the NBA Finals. New Yorkers had to liquidate some of their stocks to get money for seats for the home games, so last week (June 1 - 5) represented one of the sharper sell-offs of stocks in 2026, the NASDAQ dropping about 5%.

Rather Unseasonal for June

"What is that patter on the roof," she asked.

He stroked his beard then said, "Probably just the rain, dear."

"Oh," she nodded. And then instantly wondered whether this was yet another slip, him revealing yet again his secret life. Then again, she had never before been with a man who wore so much red and rather than chuckle or laugh actually "ho-ho-ho'ed," or was so generous with gifts.

Dallas Fed AI Projections - A Curious Mix of Wow, Hmm, and ... Well That Can't Be Good

There was an old Dilbert cartoon in which Dilbert learns how to use PowerPoint for presentations. In the first panel, he shares this fact. "Bad news: our product is killing people." In the second panel he presents this instead. "Good news: drop in the number of dissatisfied customers."
Here is a curious graph from the Dallas Fed, which offers four scenarios to capture the possible effect of AI.




1. No change. Per capita GDP continues to grow at 1.9% a year as it has for more than a century.
2. Significant change. Per capital GDP begins to grow at 2.1 to 3.4% a year. (And this is not to be scoffed at. Given the size of the economy, this is a difference of trillions of dollars, a rate of progress equal to or significantly more than what we've had since the Industrial Revolution.)
3. A benign, or positive singularity in which our lives are so transformed by AI that we gain entirely new capabilities and productivity soars beyond what one might reasonably project now, changes more profound than what percentages could capture.
4. Or this singularity results in our extinction, AI deciding that we're either superfluous or detrimental to progress and ridding the planet of us the way we have tried eradicating various viruses and diseases.
So, the most plausible scenario is that because of AI we will be making ten thousand or more dollars each year than we otherwise might in a decade (an outcome bounded by imperceptible change on the one hand and remarkable progress on the other) and in the worst-case scenario we are extinct. But as Dilbert might point out, in this last scenario there are no complaints. I mean, can it really be called a risk if there is no one left to complain?

07 June 2026

The Base of Trump's Support is the Former Confederacy

Trump won 10 of the 11 former confederate states. (The only one he lost was Virginia which was so divided over the Civil War that West Virginia actually split off from Virginia at that time.)
Those 10 states also opposed Civil Rights, the integration of schools, and the end of institutionalized racism. That is, they supported the least defensible side in the Civil War and on civil rights.

It could be that the former confederacy that was so far behind in 1860 and in 1960 is now far ahead of the rest of the nation in so uniformly supporting Trump in contrast to the West and Northeast. Or it could be that they are - once again - on the wrong side of history. And weirdly, for some of the same bad reasons.

06 June 2026

Remembering the Planners on D-Day

D-Day is rightly remembered for the men who stormed the beaches. It should also be remembered for the planners who made the storming possible. This from Michael Lind's Land of Promise.

"In 1942, American policy makers were engaged in a secret debate about the feasibility of a US-British invasion of German-occupied Europe in 1943. In a classified report for the War Production Board, two economists, Robert Nathan and Simon Kuznets, concluded that it would not be possible to produce the necessary material until 1944 at the earliest. The army's chief military supply officer, General Brehon Somervell, was furious. He denounced 'this board of "economists and statisticians" ... without any responsibility or knowledge of production.' He called for the suppression of the report, which should 'be carefully hidden from the eyes of all thoughtful men.' But the argument of Nathan and Kuznets prevailed, and D-Day was a success in 1944 instead of a disaster in 1943."

The planning paid off. In 1944, the United States completed one plane every five minutes, launched fifty merchant ships a day, and finished eight aircraft carriers a month.

The Nazis were known for the Blitzkrieg, which combined German machinery and pharmaceuticals into an attack of tanks and amphetamine-fueled soldiers. But in truth, the Wehrmacht had more horses than tanks. Throughout the war, the German military relied on roughly 2.75 million horses to move supplies, artillery, and infantry, about 50 horses for each tank. By D-Day, the United States and its allies had clear superiority in numbers and in the production capacity that sustained the war."

On D-Day, June 6, 1944, the Germans could deploy only 319 aircraft. The United States and its allies deployed 12,837.

Kuznets won the Nobel Prize in Economics in 1971. By then, the economist Somervell had wanted to silence had been recognized as one of the most important economic thinkers of the twentieth century. He and Nathan helped to win the war by insisting that the war wait for the production capacity to catch up to the ambition.

05 June 2026

Circus Tents, Factories and 2026 Job Creation

Five months into 2026, job creation appears to have returned to normal after an unusually weak 2025. The weak job growth of 2025 likely reflected several factors: uncertainty around tariffs and trade policy, slowing labor force growth from weaker immigration, and higher interest rates. Some of the 2025 tariffs have since been struck down by the courts. Trade uncertainty remains higher than it was in 2024, but 2026 has had less disruption than 2025.

A president changes the economy primarily through policy. War with Iran has increased inflation. Trump's 2025 tariffs lowered job creation. But in 2026 Trump has had less impact on trade policy than he did in 2025, because the courts have ruled that Congress, not the president, has the authority to impose taxes, even in the form of tariffs. That is good for the economy. To the extent that Americans no longer worry that presidential narrative will become actual policy, late night posts can be dismissed as odd but irrelevant.

Within limits, politics can become increasingly theatrical while much of economic life continues according to its own logic. America is at times a place with a circus tent out front, full of spectacle and sentiment, and a factory and office in the back where the actual economic work gets done. The next few years will depend in no small part on whether Congress, the courts, and the voters in November can keep the show in the tent and out of the factory.


04 June 2026

Word Cloud for New Politics for the Next Economy

 Book due in 2026 ...



The Impracticality of Measuring Near-Magical Gains in Productivity Already Demonstrated by AI

"Through their artificial intelligence model AlphaFold, Demis Hassabis and his team at DeepMind cracked the code. By analyzing the amino acid sequences of hundreds of millions of proteins, the AI learned the rules of protein folding. Today, rather than spending years in a wet lab, the system can predict the highly accurate 3D structure of a protein in just 10 to 20 seconds."

AI completes this incredibly important task that once took a PhD student years in just seconds.

How do you even measure that kind of productivity gain? How would that even show up in productivity gains or economic value?

To the extent that AI is as transformative as it promises to be, it will - like the industrial revolution - actually elude proper measure. Think about air travel. In 1900, no one could travel by air. By 2000, millions of people regularly did. How do you actually measure productivity gains when they go from, "Doesn't exist" to "Fairly common?"

John Gray on What You Shouldn't Look for In Politics

"One shouldn't look to politics for human salvation. And one shouldn't look to politics for meaning in life. If you do you'll be terribly disappointed. You should look to politics as a way to protect yourself, the people you care about so that you'll be able to find or make a meaning in life." 
- John Gray

Sapphaccino and Greek Literature

Overheard in a Greek cafe.

"My knowledge of Greek literature begins and ends with the Iliad and the Oddity," she said before taking another sip of Sapphaccino, a curious concoction the waiter had suggested as a stimulating drink best shared with that certain someone.

LBJ, Robert Caro and Power

Lyndon Baines Johnson's biographer Robert Caro pushes back against Lord Acton's familiar axiom: "Power tends to corrupt, and absolute power corrupts absolutely." Caro saw something else.

"Power doesn't always corrupt. Power reveals. When a person gets power, you see what was underneath all along. With Johnson, what you see is that as soon as he had it, he passed the first major civil rights legislation since Reconstruction, roughly a century earlier."

Related, LBJ's political career lasted 32 years. In 1937, he was elected to the House of Representatives and his presidency concluded in January of 1969.

Robert Caro has been researching and writing his multi-volume biography of LBJ for 49 years and the fifth and final volume is still in progress.

A half century+ to complete the biography of a career that lasted three decades.